Broader equity market down with tech stock losses, Tesla drops 8%, treasuries rally

From Nasdaq: 2024-07-11 18:11:29

Stock indexes closed mixed on Thursday with the S&P 500 down, Dow Jones up, and Nasdaq 100 falling after mega-cap tech stocks rotated. Tesla dropped over 8% after postponing its robotaxi unveiling. Markets were optimistic after a Fed-friendly CPI report and low initial unemployment claims. Overseas markets were up, Euro Stoxx 50, Shanghai Composite, and Nikkei 225 all rose.

US Treasury notes rallied to a 4-month high on a lower CPI report and falling 10-year T-note yield. Jobless claims dropped and demand for 30-year T-bonds declined, leading to a mixed day for T-notes. European bond yields fell, with Germany and UK touching lows. ECB rate cut chances stand at 5% for July 18.

Tech stocks like Tesla, Meta Platforms, and Netflix led losses on Thursday, with Nvidia, Lam Research, and Micron Technology also falling. Airline stocks suffered as Delta Air Lines forecasted lower Q3 adjusted EPS. Homebuilding stocks rose as 10-year T-note yield hit a 4-month low, with builders like DR Horton and Toll Brothers gaining. Real estate investment trusts saw gains on lower yields, with Alexandria Real Estate Equities up over 6%. Atlassian rose after an upgrade, while Alcoa reported strong Q2 sales. WD-40 exceeded Q3 EPS expectations. Earnings reports coming up on 7/12 include Bank of New York Mellon, Citigroup, JPMorgan Chase, Wells Fargo.



Read more at Nasdaq: Broader Equity Market Falls as Mega-Cap Tech Stocks Slump